capital raising, page-16

If it is a matter of raising something like $1m to tide us over until Grieve starts producing, I would not be too concerned but I'm afraid this raising is not for that. A material capital raising tells me they want more than the 15% they could place.

The recent Strachan report noted $10n cash post issue. That means they are looking to raise about $8m. Using an optimistic 16c price that could mean issuing 50m new shares, something I am not happy about.

I hope they don't use the funds to go it alone with the niobrara well, it's better to farmout and spread the risk. I expect they are buying some new asset which will coincide with Bob's relocation. I can only hope that whatever they are buying turns out to be an oustanding deal, though I doubt it.

I was hoping they just put things on hold for 12 months and wait for Grieve to come online. That alone would ensure a sp price of at least 60c with no more dilution.